For a Firm, Let Total Cost Be $T C ( Q ) = 160 + 10 Q ^ { 2 }$

question 81

Multiple Choice

For a firm, let total cost be $T C ( Q ) = 160 + 10 Q ^ { 2 }$ and marginal cost be $M C ( Q ) = 20 Q$ . What is the minimum efficient scale for this firm?

• A) 0
• B) 2
• C) 4
• D) indeterminate

---

Definitions:

Market Risk Premium

The extra return investors demand for holding a risky market portfolio instead of risk-free assets.

Required Rate Of Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account the risk associated with it.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio compared to the market as a whole, indicating how sensitive the portfolio is to market movements.

Diversified Portfolio

An investment strategy that spreads investments across various asset classes to reduce risk and potential volatility.